Crypto asset manager Grayscale recently won against the Securities and Exchange Commission (SEC) in court, propelling gains in the price of Bitcoin in the past 24 hours. According to the case details, a US appeals court ruled on Tuesday, August 292r, that the SEC was wrong to reject an application from Grayscale to convert the Grayscale Bitcoin Trust into a spot Bitcoin ETF. In the hours following the decision, Bitcoin jumped from $26,500 to test the $28,000 resistance zone.
On-chain data has shown that the amount of BTC available for trading on crypto exchanges increased noticeably just before the verdict. This has sparked some rumors of insider trading, hinting that some investors knew about the Grayscale win beforehand and looked to capitalize on the oncoming Bitcoin price spike.
A Surge In Bitcoin Supply On Exchanges
Crypto trading expert Ali Martinez took to social media platform X to share a Santiment chart data detailing the spike in exchange supply. According to on-chain data, around 30,000 BTC was sent to crypto exchanges in the hours before the ruling, raising questions of market manipulation. This would take the exchange supply of BTC at the time from 1.13 million to 1.16 million.
Signs of #Bitcoin manipulation? Check this out!
Just before #Grayscale legal victory against @SECGov, around 30,000 #BTC were sent to #crypto exchanges — boosting exchange supply from 1.13 million to 1.16 million $BTC. pic.twitter.com/j8xgoAzLrs
— Ali (@ali_charts) August 29, 2023
While the flurry in exchange supply could have been from a few traders who knew before the ruling beforehand, it could also be from many investors, as the entire crypto community has been awaiting the Court’s decision.
According to Santiment, 14,596 BTC worth $388.3 million were added to wallets holding around 10-10,000 BTC the day before news of the court’s decision.